Total Vehicle Cost Analysis
[1711106202_Alternative Fuel
Source Care edge report dated 22march 2024 link below
1711106202_Alternative Fuel Vehicles_CareEdge Ratings.pdf (317.1 KB)
Currently On one side, we have Union Heavy Industries Minister H.D. Kumaraswamy saying that FAME III is on the way. He recently mentioned that the government could finalize the third phase of the FAME scheme in the next month or two. An inter-ministerial group is apparently working on it, addressing issues from the earlier phases.
On the other side, we have Union Road Transport Minister Nitin Gadkari, who suggests that EV subsidies might be coming to an end. He believes that with increasing demand and production, costs are dropping, which could reduce the need for government support.
Gadkari also highlighted that the GST on electric vehicles is just 5%, compared to 28% for petrol and diesel vehicles, which he sees as a major advantage for EVs.
It seems like there’s an ongoing debate about the future of India’s EV policy. While Kumaraswamy’s comments suggest that government support is still needed, Gadkari believes the industry is ready to stand on its own.
This uncertainty is causing some worry in the EV industry, especially with the festive season around the corner. October is a huge month for vehicle sales in India, with Navratri and Diwali both taking place. EV manufacturers are concerned that if EMPS ends and FAME III isn’t ready, there might be a gap in subsidies.
Some industry players are calling for either an extension of EMPS or a quick rollout of FAME III to keep the momentum going.
However, Gadkari remains optimistic. He’s confident that India can become a global hub for EV manufacturing, with support from initiatives like the Production Linked Incentive (PLI) scheme, which aims to boost local production.
The government’s next move will be crucial in shaping the industry’s future.
| Subscribe To Our Free Newsletter |
